Market Structures

Oligopoly
1. Characteristics
  1. Few suppliers
  2. Concentration ratio e.g. 3 companies have 75% of the chocolate market
  3. High barriers of entry
  4. Inter-dependance which could lead to cozy competition but potential for price wars
  5. Non price competition
  6. Formal conclusion is illegal
2. Example: Supermarkets
  1. Strongly branded
  2. High start up costs
  3. 5/6 main ones
  4. 80% of the market
  5. Evidence they are very price competitive?
    1. Charity work?
3. More examples: petrol, banking, cars, airplanes (bowing and airbus)
Monopoly
1. Characteristics
  1. High prices
  2. Very high barriers of entry
  3. Single supplier
  4. High market share
  5. Slack (bad service)
2. Example: Hawkins (school uniform)
Monopolistic Competition
1. Same as perfect competition
  1. Differentiated products
2. Example: Hairdressers
Competitive (perfect competition)
1. Characteristics
  1. Low barriers to entry
  2. Low prices
  3. Many suppliers
  4. Price competition
  5. Homogenous products
2. Example: Taxi driver

Resource summary

	Created by maddiemurchie23 about 11 years ago